The rupee is trading weaker from Friday's close despite upswing in Asian stocks with dealers suggesting that RBI may be buying dollars to stem any further rise in the rupee. Dealers said the central bank intervened between 46.90 to 46.97 level on Monday.

"State run banks were seen buying dollars at around 46.90 levels, there a chance that it is intervention from RBI," says Dilip Raghuwanshi, forex advisor at Asit C mehta Forex. "However since the dollar is losing against all majors, there is a chance that the rupee will strengthen from hereon."

At 1 pm, the rupee was at 46.92, its strongest since May 22 and above its previous close of 47.11. The dollar lost ground on Monday and headed back to multi-month lows against the euro and sterling as investor appetite for higher-yielding assets continued to rise.